Flight delays are a reality

One out of four flights gets delayed globally for more than 15 minutes, reveals data. To combat this inconvenience for the traveller, Collinson International has launched Smart Delay that offers lounge experience in the event of a flight delay.

Hazel Jain

Collinson International recently at ITB India showcased its new product called Smart Delay, which allows the customers to go to a lounge across the world if there is a flight delay. The company owns and operates Priority Pass with 1,600 airport lounges and travel experiences.

Elaborating on their product, Sumit Prakash, Country Director, India and South Asia, Collinson International, said, “As per the insights that we have, one flight out of every four gets delayed globally for more than 15 minutes. As air travel increases, the congestion at airports increases, and flight delays have become a reality. That is why I think the proposition that we have developed, which is to offer lounge experience in the event of a flight delay, is definitely very relevant. We have the technology to track flights across the world and if there is a particular flight delay, we can trigger an automated lounge voucher for the customer who can walk in and enjoy the services of the lounge. We are looking at collaborating with both large and mid-sized travel agents in India for this.”

The company works with multiple issuers and almost all the payment network across the world.

Highlighting India’s travel potential, Prakash said, “India is experiencing tremendous travel recovery and we want to offer our unique travel experiences to these customers. The best way to reach them is through the travel agents. We are talking to many big players in the industry. As the affluence in India grows, the customers become very aspirational. Travellers nowadays are looking for experiences.”

In India, it works with partners to operate 70-plus lounges which are under the Priority Pass Access India network. “We are working towards having some of our own managed lounges as well, but that again is in the planning stage,” he revealed.

Sharing some of Collinson’s expert surveys in this field, he said, “As per our recent survey, 86 per cent of respondents said that they are actually looking for the experiences rather than the product itself. Nowadays, for any financial services brand per se, the experience that they provide to the customer has become more important than the real product.”

Millennials spending US $6,031 p.a. on travel

• Travel is one of the highest credit card spend categories for survey respondents in India, accounting for almost a third (27 per cent) of annual expenditure. Millennials in India spend the most on travel (US $6,031 per annum) when compared to other generations.
• 93 per cent of Indian survey respondents agreed that travel rewards or benefits encourage credit card use for everyday spending and travel expenses, with more than half of the total survey respondents (52 per cent) having redeemed such rewards and benefits in the last six months.
• Demand for air travel grows from strength to strength with respondents in India making approximately six return trips a year.

Consumers in India are not just looking to travel more, but are also desiring enhanced experiences. When asked which travel perks they value most, 44 per cent of respondents ranked airport lounge access as their top travel-related credit card benefit – surpassing security fast-track (9 per cent) and airport transfers (7 per cent).

In fact, 90 per cent of respondents in India agreed that access to airport lounges is a travel benefit that they would expect on any credit card with an annual fee. About 89 per cent would consider switching to a new card if their payment card stopped offering airport lounge membership as a benefit, highlighting the impact of travel benefits on retention.

Additionally, 93 per cent of Indian respondents informed that they are more likely to use their payment cards for everyday spend and travel expenses if the cards offer travel-related rewards or benefits; suggesting an influence on cardholder engagement. Notably, 45 per cent of respondents ranked travel benefits as the most important when choosing to sign up for one credit card over another.

Sumit added, “As evidenced by the ever-increasing passenger numbers in India, consumers are increasingly more willing to spend on travel, and are demonstrating a strong preference for travel-related benefits that enhance their travel experiences. By integrating travel and airport related benefits and experiences – such as airport lounge access, security fast track, airport transfers, dining and more – into customer engagement and loyalty programmes, brands are able to level-up their customer value proposition, enhance customer satisfaction, differentiate from competition, and deliver measurable business impact.”